ElectraMeccanica Provides Shareholder Update, Ending its 'Solo' EV Business to Focus on New Four-Wheeled Electric VehicleWednesday, March 22, 2023
Vancouver, BC, March 22, 2023--(T-Net)--ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO), a designer and manufacturer of electric vehicles revolutionizing the urban driving experience, today issued a letter to its shareholders from Susan E. Docherty, ElectraMeccanica's CEO and Interim COO, providing an update on the business.
A Fresh Start, Part Two
Susan E. Docherty, CEO and Interim COO, ElectraMeccanica
Roughly 100 days ago, I wrote to our shareholders and other stakeholders about the need for ElectraMeccanica to take a new path. I noted at the time that this need was obvious, even after less than three weeks inside the business.
Today, having the benefit of just over three months as a Board member, CEO and interim COO of EMV, I want to provide an update on that perspective as well as the business itself - ahead of our fiscal year 2022 financial results, which we will issue in the near future.
First, let me identify what remains as true today about EMV as it did 100 days ago:
This means that we have options. I'd like you all to bear this truth in mind as you continue to read this update.
Now, let me summarize what's new.
The items below reflect decisions made with our Board's support. They also reflect business realities the Board and I have clarified, together, since December:
Beyond the technical issues associated with the recall notice, these barriers and others to broad consumer acceptance of three-wheeled EVs make it impossible for us to profitably manufacture and sell that version of the SOLO. Instead, we believe we can address the large market for a different kind of EV and become profitable if we keep the best features of the SOLO, including terrific styling, easy charging, great handling and small size, while adding a wheel and other customer-requested features.
We think we have an opportunity to translate our legacy of disruptive, convention-bucking thinking into a superb four-wheeled EV. Put another way, I believe our ability to think outside the box need not be limited to three wheels.
While solving the technical issues with the SOLO remains our top priority in the very near term, our medium-term focus is getting back to market as fast as possible with a distinctive, safe and technically-sound vehicle.
This product also must - proven by testing - align with customer needs, and capture the still-valid horizontal market opportunity for smaller, more personalized EVs.
I realize a number of these updates may surprise and even disappoint shareholders as well as other stakeholders. That should not be the case. The SOLO, and ElectraMeccanica as a company, historically leaned into an identity as a fun, everyday, non-Big-Auto business that would disrupt a world filled with too-large, too-expensive and too-carbon-dependent cars. This remains an exciting proposition. It allowed prior management teams to bring to market a highly-distinctive product and construct a world-class facility.
EMV's ability to innovate and create unique designs has remained unchanged.
What MUST change, however, is the reality that - up to now - this mindset did not translate into a sustainable business, with a viable path to profitability. After 100 days, I am convinced that the fun, accessible, design-forward EMV philosophy has a future. It's what makes us great. And no employee nor stakeholder needs to let go of that.
We do need to let go of the approach to business execution that formerly went along with that identity. So, just as with Project E4, we need to keep what's best - our unique design philosophy - while discarding the lack of economic, operating and financial discipline that, frankly, has held us back.
I realize that an enormous amount of energy, money and time was invested in expectations that three-wheeled models of the SOLO could jump-start and support a scaled EV business.
Defining and capturing a market around a three-wheeled vehicle that doesn't easily fit into financial, legal, and regulatory infrastructure may be possible for someone - but not us. We don't have the capital to build both a new kind of vehicle and create every single aspect of required sales and support at our prior, declared MSRP.
We DO have the capital, expertise and will to take what made the SOLO great and eliminate customer pain points, while also making it easier to own and operate.
That's our high-level plan. Within a few weeks, shareholders and other stakeholders will have the opportunity to consider the decisions above within the context of our fiscal year 2022 results.
My first 100 days have clarified both for me and the Board the need to reinvent the company in order to do a far more informed, disciplined job deploying the capital and assets we have.
Change is hard. Unexpected change is even more difficult. That said, as a Board member, CEO and Interim COO, I'm not here to take the easy path. I joined ElectraMeccanica to build a real business and sell vehicles that large populations of people actually want, in a way that will actually make money. The company I joined was not set up for that kind of success. The actions I've taken in the first 100 days represent major and necessary steps towards a new and better direction.
The full version of this update can found be at ir.emvauto.com or https://ir.emvauto.com/emotion/blog-details/2023/A-Fresh-Start-Part-Two/default.aspx
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO) is a designer and manufacturer of environmentally efficient electric vehicles (EVs) that will revolutionize the urban driving experience, including commuting, delivery and shared mobility. The Company recently commissioned its state-of-the-art 235,000 square foot manufacturing facility in Mesa, Arizona to produce up to 60K vehicles annually via three separate product lines for both ElectraMeccanica vehicles and other exciting electric vehicles via contract manufacturing.
Safe Harbor Statements
Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. [ MORE ]
Safe Harbor Statements
Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian securities laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "anticipates", "estimates", "projects", "expects", "contemplates", "intends", "believes", "plans", "may", "will", or their negatives or other comparable words) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the prices of other electric vehicles, costs associated with manufacturing vehicles, the availability of capital to fund business plans and the resulting dilution caused by the raising of capital through the sale of shares, changes in the electric vehicle market, changes in government regulation, developments in alternative technologies, inexperience in servicing electric vehicles, labour disputes and other risks of the electric vehicle industry including, without limitation, those associated with the delays in obtaining governmental approvals and/or certifications. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the "SEC") (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate.
Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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